We Can Do IT! Campaign: Extensive research into the costs and impacts of IT privatization

We Can Do IT! Campaign: Extensive research into the costs and impacts of IT privatization

OPSEU / SEFPO flag
OPSEU / SEFPO flag
  • October 16, 2014 - 10:40 am
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The government is pushing ahead with an aggressive privatization plan that puts the jobs of government IT staff at risk.
 
Over the summer, OPSEU conducted extensive research into the costs and impacts of IT privatization in the OPS. We studied ministries' financial statements, filed Freedom of Information requests and interviewed our members.
 
Here is what we learned:

  • Running the networks, databases and 81,000 PCs, laptops and tablets that deliver the services that Ontarians rely upon costs about $1.2 billion annually.

  • Of this amount, $703 million, or 58%, goes to the private sector.

  • The private sector's share of government IT work has increased by 63% over the last five years.

  • A 2012 consultant's report for the Ministry of Government Services found that private contractors cost two to three times more than government employees when providing enterprise computing services, desktop management services and data storage services.

  • Since 2009, the government has paid out more than $652 million to three vendors, Compugen, CompuCom and TELUS, to provide services that were once done, and are still done to varying extents, by OPSEU members.

  • In 2013-14, the government spent $131 million on 1,479 Fee-For-Services consultants hired on a task or project basis.

  • OPSEU members working in IT are finding themselves increasingly responsible for fixing errors and cleaning up messes created by inefficient and sub-standard vendor work.

It is clear to us that the Wynne government's plan to expand the contracting out of IT services will add to costs, not reduce them, and further impact the quality of services received by the OPS.
 
We now must put pressure on the government to act responsibly and put an end to IT privatization.
 
We will present the findings of our research to MPPs at Queen's Park on:
 
Monday, October 27
10 a.m. – 1:30 p.m.
Committee Room 228
Main Legislative Building, Queen's Park
 
We will tell MPPs that Ontario could save at least $200 million a year by keeping OPS IT services in-house.

For more information please read our newest publication Better, Cheaper, Fairer: the case for contracting in of public services in Ontario.